2019 Impact Report

ActionImpact

Welcome Letter from the President & CEO ............4

Company Overview .................................................6

Leadership Profiles ..................................................8

Business Unit Highlights ........................................10

Economic Impact by State .....................................14

Supplier Diversity ..................................................16

Corporate Community Impact ..............................18

Environmental Action ............................................22

Building Our Future ...............................................26

Table of Contents

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4 5

Welcome Letterfrom the President & CEO

Last year was one for the record books. We thrived in 2019, with record revenue of $17.7 billion. Looking back on the year, I see the hard work, dedication and ingenuity of our associates. We are 4,300 associates strong connected by our company’s guiding principles.

In addition to last year’s impressive 8.5% annual revenue increase, 2019 was remarkable for many reasons. We broke sales records across all of our businesses. We explored new markets and diversified our company with the acquisition of Home Franchise Concepts. We watched construction progress on our state-of-the-art Deerfield Beach, Florida headquarters, and we made major headway on our new Vehicle Processing Center in Commerce, Georgia. Along with these achievements, we continued to be trusted corporate partners in our communities and leaders in environmental stewardship, and many of the accomplishments are detailed in this report. Although Jim Moran Boulevard may look a little different these days, our long-standing traditions of Consideration, Cooperation and Communication remain the same. These values, established by our founder Mr. Moran, along with Innovation and Accountability, represent a critical piece of our culture and will always lead us as we continue to explore new and innovative ways of doing business and sharing our collective success with others. More than 50 years ago, our founder Jim Moran started JM Family Enterprises on the foundational belief that our associates are our most important asset. Our associates continue to be well-equipped to tackle challenges and remain committed to meeting the needs of our customers, partners and the community. I am confident that we will be an even stronger company when we reflect on 2020.

Together, we do it better.

Brent BurnsPresident & CEO

To Our Associates, Business Partners and Friends,

Company Overview

Associates live and work in

48 states, Puerto Rico and Canada

44% of associates have been with the company for 10 or more years

No. 26 on FORTUNE’s 100 Best Companies to Work For list

22 Consecutive Years!

No. 20 on Forbes’ list of

America’s Largest Private CompaniesLeading automotive company

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JM Family is a leader in the automotive industry and operates our primary business units and supporting companies: Southeast Toyota Distributors, Southeast Toyota Finance, JM&A Group, JM Lexus and DataScan.

In 2019, JM Family expanded outside its core automotive business with the acquisition of Home Franchise Concepts.

In partnership with our business units, JM Family’s Corporate Group serves as an internal support team to the entire organization. It incorporates functions like Accounting, Finance, Legal, Human Resources, Talent Management and Information Technology.

2019 Key Stats Revenue:

$17.7 BillionUp from $16.3 Billion in 2018

4,362 Associates as of December 31, 2019

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Leadership ProfilesColin Brown

Chairman of the BoardJM Family

Joined 1992

Brent BurnsPresident & Chief Executive Officer

JM FamilyJoined 2000

Ron CoombsExecutive Vice President &

Chief Financial Officer, JM FamilyJoined 1999

Carmen JohnsonExecutive Vice President,

Human Resources & Legal, JM FamilyJoined 2007

Dan ChaitExecutive Vice President, JM FamilyPresident, Southeast Toyota Finance

Joined 2002

Forrest HeathcottExecutive Vice President, JM Family

President, JM&A GroupJoined 1993

Ed SheehyExecutive Vice President, JM Family

President, Southeast Toyota DistributorsJoined 1999

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southeast.buyatoyota.com

Southeast Toyota Distributors is the world’s largest independent distributor of Toyota vehicles, parts and accessories.

Fleet sales for 2019

121,548 in parts and accessories sold

$575 million

177 independent Toyota dealers retailed

vehicles in 2019380,129

Share of Toyota’s total U.S. retail sales reached an all-time high of

20.6%

Combined retail and fleet sales totaled

representing 24.3% of Toyota’s total U.S. sales volume

501,677 vehicles

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southeasttoyotafinance.com

Southeast Toyota Finance is the captive finance company for Toyota dealers in the southeast United States, providing financial products and services to consumers and dealers.

Servicedfinance and lease accounts in support of Southeast Toyota dealers at year-end 2019

769,986

nearly 62%In the southeast,

of all new Toyota vehicles were financed or leased through Southeast Toyota Finance

retail and lease contracts purchased in 2019, totaling

in support of Southeast Toyota dealers, an all-time volume record

261,341

$7.8 billion

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14 15

jmagroup.com

JM&A Group is one of the largest providers of automotive finance and insurance (F&I) products nationwide. Through our network of field associates, we work directly with our dealer partners to identify opportunities for growth, business development and increased efficiencies. Our industry-leading solutions help dealers maximize performance and drive increased profitability across all areas of their business.

Customer Service Team answered more than

and paid out more than $525 million in claims in 2019

2.1 million calls

in 2019, helping them master industry regulations and maximize sales opportunities

6,000 dealership associates

The Performance Development Center trained more than

contracts in force13.4 millionApproximately

3,800 new vehicle dealers nationwide

JM&A products are offered at

$2.3 billionNearly

in reservessold by new franchise dealers in the U.S. includes a JM&A product

vehiclesin1 10

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onedatascan.com

DataScan provides clarity to wholesale loan accounting and manages risk with a holisticauditing solution by leveraging advanced technology and highly skilled associates tosimplify the complex risk management process. As a global leader, DataScan offers comprehensive solutions to banks, independent finance companies and captivefinancial institutions.

Solutions provided to

conducted approximately 300,000 audits and verified over 18 million units and $180 billion of assets serviced by DataScan

field professionals425+

58 clientsacross North America

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8 of the top 10 banks in North America and 9 of the top 10 captive auto finance companies are DataScan clients

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Lexus Plus is a unique sales experience with a single point of contact from start to finish, and the best upfront price with no dealer fees

JM Lexus celebrated

jmlexus.com

JM Lexus is the nation’s largest volume Lexus Plus dealership.

5,015 new2,104 pre-owned

Retailed

vehicles in 2019

and

30 years of excellence in 2019

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homefranchiseconcepts.com

Home Franchise Concepts is a family of companies that sells home improvement products and services through a network of nearly 1,700 franchise locations in the United States, Canada and Mexico.

Our family of brands:

Number of franchise territories

1,700Ranked No. 1

Scott BarrettJM Family Board Member & Senior Advisor,

Home Franchise Concepts

window coverings franchise since 1996 by Entrepreneur Magazine

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Leading the Way with Our Brands:

• Innovation• Customization• Inspiration • Social Responsibility

Alabama

29,625Florida

187,983Southeast Toyota’s Retail Sales by State

All Business Units RepresentedSoutheast Toyota FinanceSoutheast Toyota Distributors

DataScanJM&A Group

Southeast Toyota FinanceFloridaAlabama

Georgia Missouri

Economic Impact by Statewith Major Business Operations

366Associates

$1,354,516Sales Tax

$13,279,791Local Purchases

$27,890,913Payroll

$77,332Taxes

$

2,619Associates

$37,318,162Sales Tax

$189,786,737Local Purchases

$433,718,608Payroll

$4,021,992Taxes

$

405Associates

$267,064Sales Tax

$165,343,262Local Purchases

$54,675,883Payroll

$311,012Taxes

$

323Associates

$26,701Sales Tax

$24,249,207Local Purchases

$24,599,972Payroll

$219,688Taxes

$

Georgia

66,110

North Carolina

65,524South Carolina

30,88722 23

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Supplier DiversityAt JM Family, we believe in partnering with a supplier base that is reflective of the many backgrounds and experiences of our workforce, diverse automotive products and services, and varied customers and business partners we serve.

Our philosophy is to build long-term, sustainable and mutually beneficial relationships with highly qualified minority- and women-owned businesses* as an essential component of our continued growth and success.

2019 Diversity Spend

* For the purpose of JM Family’s Supplier Diversity Policy and Statement, minority-owned businesses are defined as enterprises certified by the NMSDC or one of its regional affiliates. Similarly, women-owned businesses must be certified by WBENC or one of its affiliates. In Canada, JM Family recognizes minority-owned businesses that are certified by the Canadian Aboriginal and Minority Supplier Council (CAMSC) and women-owned businesses that are certified by WEConnect Canada.

%$Percentage of Total Spend

Total Diverse Spend

22$49,861,1566.1%

Number of Suppliers

Women-owned: 9Minority-owned: 13

since 2011since 2011since 2011

22%Growth

57%Growth

160%Growth

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JM Family leaders

Corporate Community Impact

JM Family focuses on three areas of giving:• Empowering Families• Promoting Education• Embracing the Environment

Our founder Jim Moran instilled the spirit of giving back as an integral part of who we are. We inspire action and engage our associates to strengthen the communities in which we live and work. We pursue that goal through support and volunteerism. We contribute our time and talents to impact diverse causes driven by our culture, associates and the community.

15,000

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volunteered by more than 1,200 associates at 230 company-sponsored events

hours

$27.5 milliondonated to nonprofit organizations

More than

served on nonprofit boards of directors

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Community Impact$79,069by associates to support our six food bank partners

United Way Campaign

African-American AchieversJM Family honored four outstanding individuals in the categories of Arts & Culture, Business & Entrepreneurism, Community Service and Education.

Each Achiever received a to the charity of his/her choice. In addition, a Youth Achiever was recognized and awarded a needs-based, four-year scholarship to Florida State University.

JM FAMILY UNITED WAY

$640,110 raised

A record-breaking campaign across four locations!

by our associates in Alpharetta, Jacksonville, Mobile and South Florida to support United Way.

$10,000 contribution

More than

volunteered778 associates

5,806 hours through our paid volunteer time off program

Donated nearly$277,900to provide assistance following national disasters in 2019, including:

• $500,000 collaborative combined contribution to American Red Cross between JM Family and Southeast Toyota ($150,000), along with Toyota Motor North America and Gulf States Toyota.

• $127,900 combined corporate and associate donations to

support relief and recovery efforts for Hurricane Dorian.

in immediate financial

assistance provided to $170,000

who faced hardship, including the loss of an immediate family member, or damage to their home by natural or man-made disasters

87 associates

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Environmental Action

We believe that giving back to the communities where our associates live and work is tightly connected to conducting business with consideration for the environment.

Together this demonstrates our long-held beliefs that doing the right thing not only feels good, but simply makes good business sense.

Solar Portfolio

Burning39,946 gallons

of gasoline

Consuming 822 barrels

of oil

Electricity use of 41 homes

for one year

Energy Conservation

402009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

50

55

45

60

kWh

(in m

illio

ns)

JM Family currently operates seven roof-top solar arrays: three at the Deerfield Beach, Fla. headquarters, two at JM Lexus in Margate, Fla. and two at DataScan in Alpharetta, Ga.

In 2019, our solar arrays produced 749,506 kWh of clean, renewable energy. Consuming the same amount of electricity from non-renewable means would emit 355 metric tons of carbon dioxide equivalents (mtCO2e), which is comparable to emissions from:

Propane SolarElectricityNatural Gas

81.91% .03% 1.77%16.29%

In 2019, we consumed approximately 41.8 million kilowatt-hours (kWh) of non-renewable energy, which is a 7% reduction from 2018 due largely in part to the divestment of properties including the JM Lexus pre-owned facility.

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Non-renewable Energy Trend

2019 Energy Mix

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Cardboard

1,320,589 340,893

1,600

1,752,523

2,641,785 665,233Paper Tires

Miscellaneous Waste Recycled

Wooden Pallets

1,698Food Waste

115,940

Aluminum, Glass and Plastic Beverage Containers

15,113Windshield Glass

1,109Cooking Oil

Metal

310,300Plastics

Waste Reductionand Recycling

71%of our total waste via

recycling and waste to energy

Diverted

More than 7.1 million pounds recycled that earned over $600,000 in rebates!

32,125,182Gallons

Irrigation

13% 17,615,834

Gallons

Water used by cars

25% 14,080,822

Gallons

Water used by associates

11%

Water Conservation

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Commerce, Ga. Southeast Toyota Distributors is building a new $90 million facility with six buildings totaling 330,000 square feet in Jackson County, across the street from where it currently processes 140,000 vehicles annually for distribution to Toyota dealers. The facility is estimated to be completed in May 2020 and incorporates associate feedback for an improved work environment with enhancements to comfort, productivity and efficiency.

Deerfield Beach, Fla.

The $150 million project will feature three new office buildings with multi-function spaces to support collaboration, flexibility and innovation among our associates. The pedestrian-friendly, state-of-the-art campus will also include green spaces, a two-story dining facility and a 55,000-square-foot Welcome Center with exciting new amenities.

Building Our Future

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A limited quantity of this report was printed on FSC certified paper made with 100% post-consumer fiber.Please share and recycle. An electronic version is available at jmfamily.com.

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#JMFamilyImpact